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3 years ago

In what section of the statement of cash flows will the issuance of bonds payable to acquire a building be reported?

Business

1 answer:

zloy xaker [14]3 years ago

5 0

Answer:

Cash inflow from Financing Activity.

Explanation:

We know, that issuance of bonds = Financing Activity in cash flow statement.

But only the transactions involving cash transactions are recorded in cash flow statement.

Thus, here the purpose of issue of bonds is to acquire a building, but it is not issued in exchange of building.

Thus, the cash collected from issue of bonds will be used for the acquisition of building therefore, cash collected through issue of bonds is cash inflow from financing activity.

When the building will be bought it will be cash outflow in investing activity.

Final Answer

Cash inflow from Financing Activity.

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Paradigm Media is a company run by a group of new media professionals. The owners of the company do not have any personal liabil

aksik [14]

Answer:

Limited liability partnership (LLP) / limited liability company (LLC)

Explanation:

Limited liability partnership and limited liability companies work very similarly and their main characteristics are:

they are separate legal entities, this means that their owners are separate from them.
since they are separate legal entities, the owners have limited liability
they are not taxed directly, they act as pass through entities and their owner's pay income taxes
they both need to be incorporated by the state government as distinct legal entities

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3 years ago

Nov. 5 Purchased 850 units of product at a cost of $10 per unit. Terms of the sale are 3/10, n/60; the invoice is dated November

pickupchik [31]

Answer: Please see explanation column for answer

Explanation: A perpetual inventory system maintains inventory balances ensuring that records are continually made immediately when purchases or sale are made together with any returns which are recorded in inventory accounts.

To record purchase of merchandise

Date Account Debit Credit

Nov 5 Merchandise Inventory $8500

Accounts payable $8,500

To record return of merchandise purchased

Nov 7 Accounts payable $300

Merchandise Inventory $300

To record payment of inventory

Nov 15 Accounts payable $8,200

Cash $7,954

Merchandise Inventory $246

Calculation =

Nov 5 - Cost of merchandise purchased = No of units x unit price = 850 x 10 =$8500

Nov 7 - Cost of merchandise returned = No of units returned x unt price = 30 x 10 = $300

discount received = Balance from accounts payable x discount rate = (8,500- 300) x 3%= 8200 x 0.03= $246

Cash = Accounts payable - Merchandise Inventory = $8200 - 246 =$7984.

4 0

3 years ago

What type of communication has replaced many other types of communication over the years

ludmilkaskok [199]

Answer:

Texting has replaced many types of communication

7 0

3 years ago

Read 2 more answers

BMC is considering upgrading the sound systems in their theaters so that their patrons can get the full experience from surround

Luda [366]

Answer:

Fixed cost = $50,000

Marginal costs= $10,000

Explanation:

The costs of upgrading 12 screens = $170,000

The cost of upgrading 6 screens = $110,000

The difference between 12 screens At $170,000 and 6 screens at $110,000 represents the variable cost of 6 screens (12 - 6)

=$170,000 - $110,000 = 60,000

Variable costs for 6 screens = $60,000

Variable costs per screen = $60,000/ 6

=$10,000

Its cost $170,000 to upgrade 12 screens. variable costs per screen = $10,000

Fixed costs = $170,000 -( $10,000 x 12)

Fixed costs= $170,000 -$120,000

Fixed costs= $50,000

Marginal cost is the cost of upgrading one more screen, which is equivalent to variable costs for one screen

=$10,000

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3 years ago

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DaniilM [7]

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4 years ago